My Blog

John Mauldin - This Crisis is the End Game, It’s a Bang Moment

With stocks plunging on renewed fears of Europe being a systemic risk to the global banking system, today King World News interviewed internationally followed John Mauldin, President of Millennium Wave Securities. Mauldin spoke candidly with KWN about the crisis, “Well, we’re watching it come down to the eighth inning. The question has always been, can they run it into extra innings or is the game going to be over? It is the end game, it’s a bang moment. All of these crises tend to have something where we look up and say, ‘Wow.’”

John Mauldin continues:

“For instance we look at the credit crisis and we say, ‘Lehman, we had our Lehman moment.’ Well, no, we had a credit crisis and Lehman triggered the final waterfall. The crisis was there and the problems were there all along. The problems are there in Europe. They’ve got too much sovereign debt, their banks have too much of that sovereign debt and are basically functionally bankrupt.

The Germans, if they want to keep the Union together, will have to allow the European Central Bank to print. That means they are going to want massive concessions from the other countries if they do that. It’s hard to get all of that done in the next two weeks.

For them it’s going to be a real problem. If you are Greece you are going to be in a depression and you just get to choose the form of the depression. Do you want to stay in the euro and have a depression or do you want to go to the drachma and have a quicker, faster depression that you can dig out of?

But from the standpoint of the rest of the world, we just want them to keep their banks from imploding....

Continue reading the John Mauldin interview below...

To hear legendary company builder Rob McEwen, original Founder of

Goldcorp discuss which company he invested $60 million

of his own money in and why click on the logo:

“If they keep their banks from imploding, then we will have repercussions, but it shouldn’t throw us into a 2008 credit crisis where, ‘Oh my God it’s the end of the world.’ And the secretary of the treasury has to get down on one his knees and beg some Congressman to bail banks out. It shouldn’t get to that level.

If they allow their banks to implode, then the technical term that we use in economics is, we’re all screwed.”

When asked about gold and the US dollar, Mauldin stated, “The dollar could rally in this type of atmosphere. So you would see gold, in dollar terms, maybe go flat to sideways or it could even go down. As I always tell you, I hope gold goes down because I buy some every month and that means when I buy gold it’s cheaper and I get more.”

When asked about the US situation, Mauldin replied, “If we don’t get our deficit under control, we become Greece and that’s a threat to the economic body. I think the government is giving them (citizens) good reason to be frightened.

I was with Senator Portman yesterday, who, as you know is on the Super Committee. We met privately for an hour going over the issues and quite frankly I didn’t come out of that meeting really encouraged about the future of those negotiations.

The dream that I had when I was 22 is not going to be the same dream that kids have today. I think it is unrealistic that in 20 years the world is going to look even close to what it is today. It’s changing that much.”

This was John Mauldin’s most powerful interview on King World News. John discussed the crisis in Europe, the US and around the world and much more. The extraordinary KWN interview with John Mauldin is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

To return to BLOG click here.